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Obama announces further two-year reprieve for old health insurance plans Obama announces further two-year reprieve for old health insurance plans
(6 months later)
The White House has announced a fourth major delay to its troubled healthcare reforms, pushing back the deadline for insurers to meet new standards of coverage until well after November’s midterm elections.The White House has announced a fourth major delay to its troubled healthcare reforms, pushing back the deadline for insurers to meet new standards of coverage until well after November’s midterm elections.
By adding another two years to a requirement that will eventually force the cancelation of many older health plans, officials hope to address continued anger over Barack Obama’s controversial pledge that “if you like your plan, you can keep it”.By adding another two years to a requirement that will eventually force the cancelation of many older health plans, officials hope to address continued anger over Barack Obama’s controversial pledge that “if you like your plan, you can keep it”.
The president’s later admission that this promise had been misleading is proving valuable ammunition for Republican critics of the Affordable Care Act, known as Obamacare.The president’s later admission that this promise had been misleading is proving valuable ammunition for Republican critics of the Affordable Care Act, known as Obamacare.
But an earlier relaxation of the rule only postponed the pain until October 2014, just before midterm elections where Democrats possibly face losing control of the Senate.But an earlier relaxation of the rule only postponed the pain until October 2014, just before midterm elections where Democrats possibly face losing control of the Senate.
Now the administration has decided that transitional rules – designed to allow current enrolees to renew their plans even if they fall short of the new standards – will be extended until 1 October 2016.Now the administration has decided that transitional rules – designed to allow current enrolees to renew their plans even if they fall short of the new standards – will be extended until 1 October 2016.
White House spokesman Jay Carney defended the latest delay on Wednesday, insisting it was a sensible refinement. “We’ve always said we were going to take steps to smooth out the implementation,” he said.White House spokesman Jay Carney defended the latest delay on Wednesday, insisting it was a sensible refinement. “We’ve always said we were going to take steps to smooth out the implementation,” he said.
However, each successive delay potentially reduces incentives for insurers to adopt more generous coverage plans originally envisaged under Obamacare and for patients to enrol through new government-organised exchanges instead.However, each successive delay potentially reduces incentives for insurers to adopt more generous coverage plans originally envisaged under Obamacare and for patients to enrol through new government-organised exchanges instead.
New figures published last month show enrolment in healthcare exchanges is finally recovering after an initial slow take-up due to technical problems with the federally-run website.New figures published last month show enrolment in healthcare exchanges is finally recovering after an initial slow take-up due to technical problems with the federally-run website.
It is unclear whether the latest delay will now lead to another slowdown, but the administration also announced changes to subsidy payments given to insurers that are intended to prevent a shortfall in enrollment leading to higher premiums.It is unclear whether the latest delay will now lead to another slowdown, but the administration also announced changes to subsidy payments given to insurers that are intended to prevent a shortfall in enrollment leading to higher premiums.
Other changes announced by the department for health and human services on Wednesday include streamlined disclosure rules for small businesses affected by the ACA reforms.Other changes announced by the department for health and human services on Wednesday include streamlined disclosure rules for small businesses affected by the ACA reforms.
The changes came as the House of Representatives voted for the 50th time to repeal or delay aspects of Obamacare – this time voting with the support of 27 Democrats to delay the penalties that will apply to individuals who do not take out a government-approved insurance scheme before next month’s deadline.The changes came as the House of Representatives voted for the 50th time to repeal or delay aspects of Obamacare – this time voting with the support of 27 Democrats to delay the penalties that will apply to individuals who do not take out a government-approved insurance scheme before next month’s deadline.
Officials at HHS were unable to provide an official total of the number of separate delays they have announced to aspects of Obamacare, but there have been at least three other major postponements.Officials at HHS were unable to provide an official total of the number of separate delays they have announced to aspects of Obamacare, but there have been at least three other major postponements.
These include a relaxation of rules for small businesses announced in February, extra time to pay for new premiums announced in December, and delays to a new insurance marketplace for businesses announced in November. These include a relaxation of rules for small businesses announced in February, extra time to pay for new premiums announced in December, and delays to a new insurance marketplace for businesses announced in November.